GrubHub stock rises after Guggenheim raises price target to Street-high $140

Shares of GrubHub Inc. GRUB, -10.28%are up 0.6% in Tuesday morning trading after analysts at Guggenheim raised their price target on the stock to $140, the highest target among analysts tracked by FactSet. Guggenheim's previous target was $94. "In our opinion, GrubHub is creating a virtuous cycle of restaurant providers based on their expanding diner base, which chooses GrubHub for their broad restaurant selection comprised of self-delivering restaurants, the pickup option or last mile logistical services," wrote the analysts, led by Matthew DiFrisco.

"Importantly, GrubHub's business model is built for all three transaction types to be economically equivalent." The analysts are also upbeat on GrubHub's partnership with Yum Brands YUM, -0.90%which will add KFC and Taco Bell locations to GrubHub's network. Shards of the food-delivery company are up 225% over the past 12 months, while the S&P 500 SPX, -0.63%has gained 18%.